Comments on: Is it possible to get a loan for a stock trading account?

By: big one

big one — Sat, 01 May 2010 00:02:09 +0000

I would say..Don’t Do It !!! By taking a loan, you are already down the interest you will have to pay back. And if the market goes flat and you take losses, then you will being paying back a loan for nothing. Never invest on a loan.

I know you don’t want to hear that, but it makes no finacial sense at all. Get a second job and invest your earnings. If you have a 401 K plan at work and it matches your contributions, use that first (that’s a 100% return right there) there are plenty of ways to do this without taking a loan.

By: BangkokBob

BangkokBob — Sat, 01 May 2010 00:02:09 +0000

No, you can not borrow money to trade in the markets. However, if you tell the bank or any other lender that you want a home loan, then use the money for trading, they really will not know.

Also once you have a fully paid account with a brokerage account, lets say $100,000 worth of stock, you can then borrow 50%, of that value, or in this case $50,000 and use that money for trading options. This is called margin trading and can be risky. The 50% that you borrow, must be paid back either with cash or by selling the stocks in your portfolo.

By: InvisibleWar

InvisibleWar — Sat, 01 May 2010 00:02:09 +0000

Take out a home equity line of credit. If it costs you 7% and you can make 15%, then you are ahead 8%. Just tell the bank you want to make home improvements. Then, just write checks to yourself and forward the money to your brokeage account.

By: JSan521704

JSan521704 — Sat, 01 May 2010 00:02:09 +0000

It’s called buying and selling on Margin but it’s quite risky.